Tele2 has agreed to buy out its partners in the Mobile Norway joint venture. Orkla, Hafslund Venture II and Katalysator Telekom are the three largest shareholders in Network Norway with 67.76 percent of diluted share capital, including warrants and options. Tele2 will pay SEK 890 million cash for the Network Norway shares and warrants, valuing 100 percent of Network Norway at SEK 1.70 billion on a cash- and debt-free basis. Tele2 will make an offer to the remaining shareholders in Network Norway on the same terms. Network Norway is Tele2's 50/50 joint venture partner in Mobile Norway, the company established to roll out the third mobile network in Norway and which operates 900 MHz and 2100 MHz licenses in the country. In 2010, Network Norway reported net revenues of SEK 2.0 billion and EBITDA of SEK 22 million excluding one off-items. The company had a total mobile customer base of 485,000 at the end of 2010. Tele2 said the acquisition will allow it to take the leading price position and "truly challenge the duopoly of the Norwegian market".
